updated 04:45 pm EST, Thu February 10, 2011

Google to buy Next New Network for millions?

Google, which owns YouTube, is involved in negotiations to buy out Next New Networks, a video podcast producer, a report said Thursday. The unofficial rumor comes from a person familiar with the matter, and maintains that YouTube wants to improve the quality of its content thanks to Next New's development and partnership service. Google may be considering closing down Next New's studios and invest in developing partner videos instead with the newly purchased assets, the source said.

YouTube's likely aim would be to get a premium video streaming service that could compete with the likes of Hulu, Netflix and cable companies. While YouTube dominates the online video space, its investors are concerned that it is not contributing to the earnings.

Next New Networks is privately held and produces web comedy shows such as Barely Political and online cartoon network Channel Fredarator. The deal may be worth tens of millions of dollars, and official details may arrive as early as next week.